In anticipation of minimum floor price (MFP), India’s CRC market has remained stable this week.
After a significant fall in domestic CRC prices last week, prices remained stable this week amid hopes of minimum floor price to be introduced on steel products.
Current offers for 0.9 mm CRC are assessed at INR 33,000/MT (ex-Mumbai), INR 33,500/MT (ex-Chennai), INR 33,500/MT (ex-Kolkata) and INR 35,000/MT (ex-Delhi). All prices include 12.5% excise.
“We are waiting for MFP to be introduced soon after which there are chances that domestic prices will move upwards”, quoted a trader based in Delhi.
Alongside, imported CRC offers have been almost stable with minor fluctuations since last 1-month. CRC (0.9 mm) offers from China are assessed in the range of USD 310-320/MT, CNF India. While, offers from Korea/Japan are USD 380/MT, CNF India.
As per provisional customs data, CRC import registered an increase of 14% to about 165,550 MT in Nov’15 against 145,350 MT in Oct’15.
In an attempt to protect domestic steel industry, the government is likely to introduce MFP on various steel products, which also include CRC.
Under this MFP system, although import offers plunge down further, all duties imposed to arrive at landed cost of imports (customs duty, countervailing duty etc) will be calculated on MFP.
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